Headlines

Hermès Makes Big Real Estate Buy on Rodeo Drive

Hermès, which currently operates this store on Rodeo Drive, has bought two nearby buildings. Its plans for the latter space are not yet known. Photo: Walter Cicchetti/iStock by Getty Images

Hermès (Paris) has been identified as the purchaser of two adjoining properties on Beverly Hills’ famed Rodeo Drive. The buyer’s ID was initially reported by The Wall Street Journal, and The Hollywood Reporter was one of several news sources to also cover the deal.

The Journal’s scoop ended months of speculation about who bought 338 North Rodeo Dr., THR reported. The buildings Hermes purchased contain storefronts occupied by Tom Ford, Moncler and Balenciaga.

It remains unclear exactly how Hermès plans to use the 25,000-square-foot property, and that may not be revealed for some time, as current tenants’ leases remain in place for several more years, THR noted. (Hermès’ already has a store at 434 Rodeo Drive that’s located a few storefronts away from the purchased buildings.)

According to real estate firm CBRE, the transaction marks the priciest real estate acquisition in Beverly Hills since the early 2000s. “What you see now on Rodeo Drive is not only a commitment by the luxury brands that are able to buy their real estate, but you’re seeing the buildings get much bigger,” Jay Luchs, a Vice Chairman at Newmark who brokered the deal, told the Journal.

VMSD Staff

Drawing on more than 125 years of history serving the retail design market, VMSD magazine provides retail professionals with the most up-to-date, innovative retail design ideas and industry news through its industry-leading magazine, website, social media channels and bulletins.